Uncertainties Such as Natural Disasters

question 161

Multiple Choice

Uncertainties such as natural disasters:

• A)Are not contingent liabilities because they are future events not arising out of past transactions or events
• B)Are contingent liabilities because they are future events arising from past transactions or events
• C)Should be disclosed because of their usefulness to financial statements
• D)Are estimated liabilities because the amounts are uncertain
• E)Arise out of transactions such as debt guarantees

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Definitions:

Coelom

A fluid-filled body cavity found in most multicellular animals, situated between the intestinal canal and the body wall.

Coelomic Cavity

The Coelomic Cavity is a fluid-filled body cavity within organisms that is lined by a tissue derived from mesoderm, providing space for the internal organs and allowing them to move independently.

Cloacal

Relating to the cloaca, a common cavity at the end of the digestive tract for the release of both excretory and genital products in vertebrates such as birds, reptiles, amphibians, and some fish.

Early Digestive Tract

Refers to the initial sections of the digestive system where the breakdown of food begins, including the mouth, esophagus, and stomach.